Definitions
Could you explain the difference between Reinsurance recoverable on loss and lae payments and net amount recoverable from reinsurers? I tried to google but couldn't find any clear, helpful definitions. Thanks!
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Could you explain the difference between Reinsurance recoverable on loss and lae payments and net amount recoverable from reinsurers? I tried to google but couldn't find any clear, helpful definitions. Thanks!
Comments
The former is all recoverable - on paid and reserve. The latter is recoverable on paid only.
Do we have to be concerned with potentially double counting recoverables on paid in these problems?
Can you give an example of where double-counting may be an issue?
In Fall 2017, Question 14 - under assets they have reinsurance recoverable on loss and lae payments **and ** net amount recoverable from reinsurers. If the net amount recoverable was not 0, lets say its 20, would that amount be double counted in line item (3) and (6)? Since the 50 in reinsurance recoverable on loss and LAE payments includes all recoverables on paid and reserves and the net amount recoverable includes paid.
Ok, I confused net amount recoverable with something else. This is an item particular to Part 6 where the balance sheet gross of reinsurance is set up. It is a hypothetical amount needed to balance the asset and liability, after all the actions of grossing of reinsurance has been taken.